NY's MCTMT

[FDNY]

Wondering if any of you have done any returns relating to the MCTD (Metropolitan Commuter Transportation District).  The instructions say no tax imposed if self employment income is under 50K.  But if 50K and above all the SE income is taxable.  But the worksheet in ATX says on top  "Only the total net income allocated to the MCTD that exceeds 50K is imposed the MCTMT" (the tax).  So which is it?  All or amount over 50K?   Maybe I'm reading into this, but I've always used the ATX explanation, now wondering if that's not right.

I hope someone knows, don't make me call NY Monday, they're cranky after the weekend.

 

[Lion EA]

I don't have any now.  Isn't there a loophole re first quarter income?  My NY businesses are partnerships and S-corporations, so that lets them off the hook, yes?  My brain is too fried to know what I've done!

[FDNY]

For employers, if payroll is under a certain amount in a quarter they are not subject .  But partnerships, LLPs and LLCs must give their partners and members the amount allocated to the district for their individual returns.   Pub 420 on pg 19 says the MCTMT is imposed at a rate of .34% of your TOTAL net earnings from SE allocated to the MCTD for the tax year.    ATX doesn't say that, at least how I am reading it. 

I liked it better before 2012 when it was a separate return, I would fill it out and give to the client to mail in, no one did and the threshold was only 10K back then.  They were never questioned I guess because the state didn't have any info as to their allocation of income to the district.

If my brain wasn't fried earlier, I think it is now.

[Lion EA]

OK, one partnership is still at a loss.  Gotta look at other NY returns to see if I missed anything.  Probably did.  

[FDNY]

Sorry, I wish I never brought this up.  You're probably fine.  I'm the one with the headache, my two exposed clients fight me on this every year.

[michaelmars]

Just like the LLC fees, every year we miss a few, especially single members and never get a notice.